💵💰The uncomfortable truth behind USDT

Tether (USDT) has been at the center of several controversies that have shaken the crypto ecosystem. Although it is the most widely used and has the highest market capitalization stablecoin, its history is marked by doubts about transparency, reserve backing, and corporate ties.

💣 Tether: Stability or ticking time bomb?

Although $USDT is marketed as a stablecoin backed 1:1 by dollars, its credibility has been questioned due to:

🔍 Lack of transparency

• For years, Tether Limited avoided independent audits.

• In 2019, they admitted that only 74% of USDT was backed by cash and equivalents.

⚖️ Legal investigations

• In 2021, the New York Attorney General fined Tether and Bitfinex $18.5M for hiding an $850M deficit using reserve funds.

• Although they did not admit guilt, the case revealed opaque practices.

🧩 Questionable reserves

• The reserves include commercial paper and other assets, not just liquid dollars.

• This raises doubts about their ability to respond to a massive run.

🔗 Corporate ties

• Tether and Bitfinex share executives, which has raised suspicions of market manipulation and conflicts of interest.

USDT dominates the market, but at what cost? Are we building DeFi on a fragile foundation? Transparency is not optional when we talk about trust

#BinanceSquare #Write2Earn $USDC $USD1 #Binance #BinanceSquareTalks #BinanceSquareFamily